The growth of co-working space sector is set to spread to new geographies in 2020. The coworking sector has ridden the crest of a wave for the past two years with demand increasing by almost 100% and market supply more than ever before. 2018 and the 1st Qtr of 2019 showed significant shifts in the trend with an increasing demand by corporate clients showing their interest flex space. Simultaneously, real estate developers and landlords are also taking a greater interest in the sector in the face of this rise in demand.
A combination of new ways of working, multi-location access, and activity-based settings are taking over the traditional offices, paving way for modern workplaces. Here are the top 10 coworking trends which we expect to drive the industry in 2020.
- Collaborative Technology: The coworking space nowadays more automated than before. Access cards, management software, attendance system, automated invoices, etc. have minimized the human interface in the management of the coworking space. By 2020, workplaces will be designed as technology integrated space. Millennials are always looking for high quality, high speed, reliable and covetable products and collaborative technology is required to meet these needs of today’s generation. New Technologies like The voice-activated assistant, wearable technology connected with the Internet of Things (IoT), will enable seamless connection, alliances, and accessibility from any place at any point in time.
- First choice for real estate owners– The Indian real estate market reaction to the advent of coworking spaces, will result in a greater demand for office spaces focused on flexible leasing terms. So in the coming time, real estate developers, property owners, and managers would prefer to rent out a major part of their total space as flex workplaces. As per a recent survey report, the total space leased by shared workplace operators is expected to stand at 10-12 million sq. ft. by 2020.
- Corporates –the new driving force– Co-workplaces were always seen as an aid to the professional workspace demand of startups, freelancers, young entrepreneurs, and SMEs. But with changing work culture it is not confined to them and large corporate companies are also showing their interest in these office spaces. The corporates are adapting fast to this new trend and seeking to the coworking space solution for the flexible lease terms, new setup for regional offices and choice for employees to work near home. With the rise in demand form major corporations, there is a big opportunity for the coworking space provider, in the coming years.
- Workplace flexibility-The next-gen work space will be mobile workstations, virtual assistant integrated desks, and smart sensing technologies redefining the concept of flexibility at work. Mobile offices will pave the way for remote working from anywhere and everywhere. This will eventually empower the Gen-X to work on real-time basis and allow companies to operate with a smaller footprint. With the cut off in commuting time, there will be an increase in productivity for the business and a healthy work-life balance for employees. With the coming years and technological advancement, co-work spaces are all set to give more flexible options to users, than available today.
- Virtual workspaces– Virtual reality will be an integral part of workspace in the future. Digitization is blurring the definition of workspace being ‘physical’ and ‘virtual’. With the technology playing an instrumental role in setting up virtual meetings and a collaborative environment with web and video conferencing, nowadays virtual workplace is becoming more of a reality.
- Space as Service– Large Corporate organizations are looking for larger and more agile workspaces, with flexible lease terms. The ‘Space as a Service’ is a rental model in which landlords provide the lessee with a slew of services from furniture, fixture, facility and communication management, and even staffing requirements. Rental and leasing contribute almost 20% of the total commercial space demand and the experts believe that leased space contribution will gain more prominence due to the high prices which deter many firms from investing in properties directly. So, most of these firms are switching over to co-working spaces that offer “ Space as Service” on flexible leasing terms to suit their requirements. The commercial real estate sector in India will continue to adopt professional management approaches like SPaaS which bodes well for both the provider and the consumer.
- Increased Utilization: With each year, Coworking spaces are getting bigger and serving more members. With the rise in demand, especially in premium locations, coworking spaces are trying to fit more people into the same amount of space. There is a substantial increase in demand for private space; subsequently, the event spaces or common areas are being squeezed into smaller spaces. The future will see Coworking spaces providers squeezing more value out of the existing desks available while trying to meet the consumer’s requirement.
- Quality Over Quantity – One of the future trends the industry will focus on is the quality of its members over quantity. The niche coworking has already in demand and is sure to grow further. Many industry-specific coworking space providers, put their members through a vetting process to ensure that they are an excellent fit for the space. This helps them to retain them for longer periods. It’s the members that make a space unique, and the coworking spaces are always trying to add in the ones that will elevate the community.
- Increased Profit Potential: Now that coworking has established itself as an industry, the focus will now shift to the next phase: profitability. Initially, the main source of revenue stems from membership fees and packages and renting out equipment. However, the coworking space can increase its profits by maximizing the profitability per square foot. Recently few players in the industry acquired a variety of companies in different markets like coding, digital marketing, and architectural modeling software to meet more of its member’s needs, and ensuring that the members spend more money within its ecosystem.
- Go green: The green trend is flourishing and coworking spaces are getting more inclined towards it. Co-working space providers are looking for ways to incorporate more eco-friendliness into the office space. A space that has ample plants, flowers and well maintained green walls somehow has the potential to positively impact the environment, resources, and dwellers wellbeing. Not only this, there also financial benefits of going green. Businesses that are actively managing their carbon emissions enjoy a higher return on investment than companies that are not. Also increasing natural spaces increase property and land values. 2020 will see a more green at work.
Coworking is here to stay, though the trends may vary from region to region and from time to time. The above mentioned 10 trends are the ones that are expected to set the coworking culture for the year 2020 and make it future-ready. The coworking players would need to up their game in an ethical way and the key to their success will be offering something different to the clients.
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